After You File Chapter 7 bankruptcy. Once your Chapter 7 bankruptcy case has been filed, it will take approximately 4 months to receive your bankruptcy discharge. The act of submitting your petition to the bankruptcy court starts your Chapter 7 bankruptcy timeline. Here is what happens in the interim:
A reliable bankruptcy attorney will help you throughout your Chapter 7 bankruptcy timeline, deal with the nitty-gritty, and answer any questions you can think of. Most bankruptcy lawyers offer free consultations, so it can’t hurt to talk to a few and choose the one you’re most comfortable with . Complete the paperwork.
Wait for your discharge. People usually receive their discharge about two months after their 341 meeting. The discharge is the court order that legally eliminates your obligation to pay your debts. This is usually cause for celebration! You did it!
This so-called Meeting of Creditors is held about 20 - 40 days after your bankruptcy case is filed. For the most part, creditors do not attend these meetings, nor are they required to. During the meeting, you will have to testify under oath that the information presented in your bankruptcy forms is completely accurate.
This so-called Meeting of Creditors is held about 20 - 40 days after your bankruptcy case is filed.
In most cases, the filer receives it within a week of filing their case. At the very top of the form, you'll find your case number and the date your case was filed.
Certify that the information is correct. Before your case can be filed, you’ll have to review and sign your bankruptcy forms, certifying the contents of your petition are accurate to the best of your knowledge.
You must complete the second course, called the debtor education course, after you file your case. You can take it as soon as you receive your bankruptcy case number. The certificate should be filed with the court no later than 60 days after the first 341 meeting of creditors date (more below).
You must turn over particular documents, such as bank statements, paycheck stubs, and tax returns, to the bankruptcy trustee (the official who oversees your case) at least seven days before the initial 341 meeting of creditors date.
After the completion of the above steps, the court will issue an order of discharge erasing your qualifying debt. You'll get a copy in the mail a few days later.
The filing not only starts the case but, if this is the first time you've filed, the automatic stay order that stops most creditors from collecting against you will go into effect immediately. If you've filed multiple bankruptcy cases in quick succession, the stay might last only 30 days, or might not go into effect at all.
Once completed, the average bankruptcy petition, including schedules and other required documents, will be between 35 and 50 pages. Completing the credit counseling course. If you're an individual bankruptcy debtor, you'll also need to take a credit counseling course from an approved provider.
While it's possible that you could receive a discharge within as few as 82 days after filing your case, it would be unusual. The court usually needs an additional twenty days to accommodate scheduling and other procedural requirements.
The 341 meeting of creditors will be set at least three weeks after your filing date, but not more than 40 days later .
Deadline to File Chapter 13 Plan A Chapter 13 Plan must also be filed within 14 days after the Petition is filed. The plan provides for submission of future income and the treatment of the creditors, specifying when and how much each kind of creditor will receive. Must provide for payment of priority claims, including all past and current domestic support obligations. §§1322 & 1325, Bankruptcy Rule 3015 (b)Disposable income does not include income for child support or disability for dependents. Debtor may deduct expenses of child support/maintenance, charitable contributions of no more than 15% of gross income, plus costs of doing business. 1325 ( (b) (B)If income exceeds median, then plan is limited to 5 years, but could be less. If income less than median, then plan may be no more than 3 years, unless approved by court §1322 (d). But see 1325 (b) (3) (4).
Deadline to File Master Mailing Matrix The master mailing matrix must be filed no later than 5 calendar days after the Petition. Failure to do so will mean that your case will be automatically dismissed.
Court Mails Notice of Bankruptcy Approximately 2-3 weeks after the Debtor (s)’ case is filed, the court mails a Notice of Chapter 13 Bankruptcy, Case, Meeting of Creditors, & Deadlines to the Debtor (s) and to the creditors listed in schedules filed by the Debtor (s). The notice contains meeting date, deadlines for objections to discharge and for filing Proofs of Claims. The meeting date and other information can be obtained by calling the court’s Automated Information Line.
Court Mails Notice of Bankruptcy Approximately 2-3 weeks after the Debtor (s)’ case is filed, the court mails a Notice of Chapter 7 Bankruptcy, Case, Meeting of Creditors, & Deadlines to the Debtor (s) and to the creditors listed in schedules filed by the Debtor (s). The notice contains meeting date, deadlines for objections to discharge and for filing Proofs of Claims. The meeting date and other information can be obtained by calling the court’s Automated Information Line.
If there is a trustee’s sale or foreclosure pending – immediately record a Notice of Bankruptcy in the county where the real property is located .
A discharge may still be granted if the prior bankruptcy discharge was Chapter 12 or 13, not within last 6 years, unless paid 100% of allowed unsecured claims, or paid at least 70% allowed unsecured claims and the plan was proposed in good faith and was the their best effort. 11 U.S.C. § 524 and 727 (a) (8 & 9).
Prior Bankruptcy Prevents Filing of Chapter 7 A Debtor is prohibited from receiving a discharge under Chapter 7 if they received a discharge in a bankruptcy which was filed within the last 8 years. A discharge may still be granted if the prior bankruptcy discharge was Chapter 12 or 13, not within last 6 years, unless paid 100% of allowed unsecured claims, or paid at least 70% allowed unsecured claims and the plan was proposed in good faith and was the their best effort. 11 U.S.C. § 524 and 727 (a) (8 & 9). No discharge for debtor’s spouse if filed within 6 years § 524 (b).
The post-filing debtor education course takes a minimum of 2 hours. This time requirement conforms to the Executive Office for U.S. Trustees (EOUST) minimum program guidelines.
When do I need to take this post-filing debtor education course? In a chapter 7 case, you must take the debtor education course: (1) after you file your bankruptcy case and (2) within 60 days after your first meeting date with your creditors and bankruptcy trustee.
Our post-filing debtor education course is available for $20. If you are filing a joint bankruptcy, you are only required to pay one fee to take the course.
This meeting is also known as a Sec. 341 meeting (named after Sec. 341 of the Bankruptcy Code which requires it). In a chapter 13 or chapter 11 case, the debtor education course must be taken (1) after you file your petition for bankruptcy and (2) no later than the last payment you have to make as required by your bankruptcy plan, ...
Both courses are required. The Bankruptcy Code requires individuals to complete credit counseling before filing for bankruptcy, subject to certain exceptions, and requires debtor education to be completed after the bankruptcy case is filed.
Yes, there are no additional fees charged for taking the Second Bankruptcy Course together.
Debtor education, post-filing course, pre-discharge course, and personal financial management class all refer to the same class. This is the class you need to take after your bankruptcy case is filed.
In both Chapter 7 and Chapter 13 bankruptcy, you (and your spouse if you file jointly) must take two courses before you receive a bankruptcy discharge (the order that wipes out qualifying debt)—one before you file your paperwork, and another afterward. Read on to learn about the second class, a personal financial management course known by several ...
In both Chapter 7 and Chapter 13 bankruptcy, you (and your spouse if you file jointly) must take two courses before you receive a bankruptcy discharge (the order that wipes out qualifying debt)—one before you file your paperwork, and another afterward.
When You Must Get the Counseling. In Chapter 7 bankruptcy, you must file Form 423 and the certificate no later than 45 days after the date on which your meeting of creditors was first scheduled. Don't miss the deadline. If you do, the court might close your case.
Unlike the agencies approved to provide pre-bankruptcy credit counseling, the agencies providing debtor education courses don't have to be a nonprofit organization.
To receive a discharge in Chapter 7 or Chapter 13 bankruptcy, you are required to take a debtor education course after you file your case. The goal of the debtor education requirement is to educate you on making smart financial choices so that you won't have to seek bankruptcy relief in the future. When you take the debtor education course, you ...
Bankruptcy is an unusual area of law because it's essentially a qualification process. The laws provide instructions for completing a 50- to 60-page bankruptcy petition, and because all rules apply in every case, you can't skip a step.
Regardless of the method of instruction, the course will typically last at least two hours. If you attend the course in person, an instructor will provide you with course materials and teach you in a class setting.
If you don't complete the debtor education course within the specified deadlines, the court will typically close your bankruptcy case without a discharge. This means that if you want to wipe out your debts, you will need to file a motion, pay the necessary fees, and ask the court to reopen your case so that you can file ...
It's the second course. You must complete it before receiving your debt discharge (the order that erases qualifying debt) unless you're exempt from taking the debtor education course.
When you file for bankruptcy, you'll complete two courses—a credit counseling course and a debtor education course. If you're unsure which to take or how to find approved providers, these basics will help:
You'll take the credit counseling course before bankruptcy.
After filing you have to take the second course called the Financial Management Course, or Debtor Education Course, or you won’t receive a discharge.
You do have to take a second course, now that you have filed, but you don’t have to take it from any particular company.
If the court dismisses your matter because you forgot to file your certificate, all is not lost. You can ask the court to open it and give you additional time to file official Form 423 Certification About a Financial Management Course (the form you use to tell the court that you completed the class).
Exacerbating the problem is the fact that the time to file the certificate of completion is limited. It’s due no later than 60 days after the date first set for the 341 meeting of creditors (the hearing all bankruptcy filers must attend). If you don’t file it on time, the court will dismiss the case without issuing a discharge (although the court will send a notice reminding you about the requirement beforehand).
If the court grants the motion, you’ll file two additional motions: one requesting permission for additional time to file Form 423 and another asking the court to enter the discharge that wipes out your dischargeable debt.
Additionally, you’ll ask the court to reopen the case so that you can fix the error by filing proof that you completed your debtor education course. If the court grants the motion, you’ll file two additional motions: one requesting permission for additional time to file Form 423 and another asking the court to enter the discharge that wipes out your dischargeable debt. The court will likely grant your requests without setting a hearing, but reopening your case will cost you—you’ll have to pay the filing fee again.
It’s due no later than 60 days after the date first set for the 341 meeting of creditors (the hearing all bankruptcy filers must attend). If you don’t file it on time, the court will dismiss the case without issuing a discharge (although the court will send a notice reminding you about the requirement beforehand).
Although it’s possible to forget to file the first certificate, the problem usually doesn't start there. It’s the second course—the debtor education requirement taken after filing for bankruptcy—that tends to be at the root of most closure problems.
It’s often called the “debtor education” class, the “second course,” or the “post-bankruptcy filing” course. Most people file the first certificate along with the other official forms (bankruptcy petition and schedules) needed to start a case (but not always).
Bankruptcy Education Deadlines. Those who file for Chapter 7 bankruptcy protection have 60 days after the first date set for the meeting of creditors to complete the debtor education course and file the certification of completion with the court.
With Pre-file Credit Counseling, you’ll start online, then receive a personal counseling session by telephone to discuss the details of your current financial situation with a Certified Financial Counselor. Your counselor will help you build an accurate picture of your current finances, then give specific advice on actions you can take to improve it. You’ll also discuss short- and long-term financial goals and determine if there are any alternatives to bankruptcy. The counselor will explain consequences of bankruptcy and actions you can take to get back on sound footing after a bankruptcy.
Exceptions include: being on active duty in a military combat zone. a disability that prevents you from taking the course. no court-approved course providers are available in your area. a course isn’t available in a language you understand.
What Is Bankruptcy Debtor Education? In order to be discharged from Chapter 7 or Chapter 13 bankruptcy, you must complete a Pre-Discharge Debtor Education course. The purpose of this bankruptcy course is to help you remain financially secure and use credit wisely so you don’t end up in bankruptcy again.
If you don’t complete the debtor education course before the deadline passes, the court will typically close your bankruptcy case but not discharge you. So, to wipe out your debts, you must file a motion, pay the required fees and ask the court to reopen your case so that you can file the certificate and obtain a discharge.
When you complete the debtor education course, you must file a form called Debtor’s Certification of Completion of Postpetition Instructional Course Concerning Personal Financial Management (Official Form 23) with the court.
It includes the requirement that all Chapter 7 or 13 bankruptcy petitioners complete approved credit counseling and provide to the court a certificate of completion from a U.S. Trustee-approved, nonprofit credit counseling agency. The law also requires all consumers who file for bankruptcy to successfully complete two bankruptcy courses prior to having debts discharged.